🐝 Just broke down Nvidia's earnings in the Weekly Buzz and want to kick off a discussion post to hear your thoughts! 🚀 Overall, pretty wild results with a surprise 70% revenue growth projected for fiscal 2028 (well above the 45% expected), and that's the 'supply constrained' number. ✨ From a valuation standpoint, Nvidia is more attractive than it has been in years with a 28x PE ratio, and over 95% analysts tracking the stock have it rated as a strong buy. 😰 My one concern is what WSJ is calling the '$1.5T question Nvidia can't answer' which is basically that the massive AI spending needs $1.5T in revenue to justify the investments, with WSJ saying: “Ultimately, Nvidia and other AI chip makers are living on borrowed time. At some point, big spenders will reach a breaking point where their cash piles are smaller, and they’re unable or unwilling to raise more money from debt or equity investors. If AI turns out to be worth less than it costs, that is inevitable.” 🤔 Curious what everyone's thoughts are on that question, analysts don't seem too concerned but it's definitely something I've been thinking about a lot (both for Nvidia and Mag 7 in general). It's part of the reason I recently sold $META, as unlike some of the other Mag 7, I find the ROI on their AI spending much less clear. 🏆 In any case, Nvidia showed once again why it deserves it's spot as the most valuable company in the world and proved that AI demand is hotter than ever 🔥 👇 Will link my full breakdown in the comments
Interesting to see analysts still so bullish about Nvidia's future growth. I've been on the fence about trimming my position, which is up around 5x but has been hovering in that range for a long time. It's hard to imagine a $5T company having massive growth potential, but with this earnings report, their future guidance, and implied 44% upside and 58 out of 61 analysts rating it a buy or strong buy, I feel like it might be worth holding a bit longer.
Steev W@sourdoughman · 15d
Thanks for the breakdown! Been on the Nvidia bus since 2022 and it's been a great ride so far.
Jon Snow@jsnow10 · 15d
Jensen himself told that « No one is using AI better than $META « So, ROI on their AI spending will be much greater than market is currently estimating right now.
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